What are the short-term rental rules and taxes in Gatlinburg, Pigeon Forge and Sevier County, TN?
Short answer
The Sevier County Clerk says rentals need a $15 county business license, and homes inside Gatlinburg or Pigeon Forge also need a $15 city license. Outside city limits you also need the county's annual short-term rental unit permit, which costs $250 a year for 12 or fewer guests and requires a fire inspection. Gatlinburg says the guest pays 12.75% (9.75% sales tax plus its 3% hotel and motel tax) and Pigeon Forge says 12.25% (including its 2.5% lodging tax). Airbnb and Vrbo remit sales tax and local occupancy tax in Tennessee, but each city's monthly gross receipts tax stays with you.
In the Smokies, which rules apply depends on one line on a map, the city limit. Inside Gatlinburg or Pigeon Forge, the city licenses you, collects a lodging tax and charges a gross receipts tax that platforms don't pay for you. Outside any city, Sevier County's Fire Marshal runs an annual permit and inspection program and the county collects its own lodging tax. Everything below comes from city, county, Tennessee Department of Revenue and platform pages, linked where it's used.
Checked on Nov 4, 2026.
Do you need a permit or registration
Rentals anywhere in Sevier County
The Sevier County Clerk's business license page (opens in a new tab) says rentals must get a county business license, $15. Estimated gross sales under $3,000 need no license but require a signed affidavit with the Clerk. Licenses for gross sales of $3,001 to $99,999 renew by May 15. Licenses for $100,000 or more renew through TNTAP by April 15. Apply online at the county clerk's business tax site (opens in a new tab) or in person at 125 Court Ave, Suite 202E, Sevierville (865-453-5502, option 4).
The Tennessee Department of Revenue's short-term rental guide (opens in a new tab) (May 2023) says rentals booked through a platform are generally attributed to the owner, not the platform, for business tax, so platform bookings count toward your thresholds.
Inside Gatlinburg
Gatlinburg's new overnight rental business sheet (opens in a new tab) lists:
- A city business license from the Finance Department, $15 (865-436-1405).
- The county license above.
- A Tennessee Department of Revenue tax ID, which is not your federal tax ID.
- A Tourist Residency Permit from the City of Gatlinburg (865-436-1408).
The city's Tourist Residency Permit page (opens in a new tab) did not show its requirements when read. Call the number above for the fee, inspection and zoning rules.
Inside Pigeon Forge
Pigeon Forge's forms and licenses page (opens in a new tab) requires a $15 city business license from the Finance Department at City Hall, 3221 Rena Street (865-429-7309), plus the county license and a state tax ID. The Building Department page (opens in a new tab) says overnight rentals are allowed in areas zoned R-2 and higher. Plans for a building that is or could become an overnight rental must carry the seal of a Tennessee-registered architect or engineer.
Unincorporated Sevier County
Homes outside city limits need a Short-Term Rental Unit (STRU) permit, required since Jan 1, 2024, according to the county's STRU permit program page (opens in a new tab).
| Unit size | Annual fee |
|---|---|
| Sleeps 12 or fewer | $250 |
| Sleeps 13 or more | $250 plus $25 per occupant |
| Third or later inspection | $25 each |
Apply online through Community Connect (opens in a new tab), or mail the application with a check payable to Sevier County Fire Prevention to 149 Industrial Park Dr., Sevierville, TN 37862. Each address needs its own application. A fire inspector inspects the unit, the permit is issued after the inspection, and it renews every year in the month it was first issued. Questions go to 865-774-3603 or firecodequestions@seviercountytn.org.
Occupancy and sales taxes
| Tax | Rate | Who levies it | Source |
|---|---|---|---|
| State sales tax | 7% | Tennessee | TDOR due dates and rates (opens in a new tab) |
| Local sales tax | Up to 2.75% | Local jurisdiction | Same TDOR page |
| Gatlinburg hotel and motel tax | 3% of gross hotel sales | City of Gatlinburg | Gatlinburg overnight rental sheet (opens in a new tab) |
| Pigeon Forge lodging tax | 2.5% of gross hotel sales | City of Pigeon Forge | Pigeon Forge forms page (opens in a new tab) |
What the guest pays, as each city states it:
- Gatlinburg. 9.75% sales tax to the State of Tennessee + 3% city hotel and motel tax = 12.75%, per the city's sheet.
- Pigeon Forge. The city says its 2.5% lodging tax brings the total to 12.25%, which works out as 12.25% − 2.5% = 9.75% sales tax.
- Unincorporated Sevier County. No combined rate here. The county clerk's page says to pay lodging tax to the County Trustee but doesn't state the rate. A 2007 private act (opens in a new tab) let the county levy up to 3% outside cities, but that is a ceiling, not a confirmed current rate. Confirm the rate with the Sevier County Trustee at 865-453-2767, and look up your address's local sales tax with the TDOR lookup tool (opens in a new tab).
City gross receipts taxes, paid by you. These are not added to the guest's bill.
- Gatlinburg: 1.25% of total gross sales, excluding sales tax, monthly.
- Pigeon Forge: 1% of total gross sales, excluding sales tax, monthly.
TDOR's guide says required cleaning fees, guest booking fees, non-refundable pet deposits and damage protection fees are taxable, and rentals to the same person for 90 or more continuous days are exempt.
What Airbnb and Vrbo collect for you there
Airbnb. Airbnb's Tennessee tax article (opens in a new tab) says it collects and remits 7% state sales tax and 1.50% to 2.75% local sales tax on reservations of 89 nights or fewer, plus locally imposed occupancy taxes on the first 30 days of a reservation, all on the listing price including cleaning fees.
Vrbo. Vrbo's N to Z tax list (opens in a new tab) shows it collects Tennessee state and local sales tax on stays under 90 nights (since Oct 1, 2020) and a local lodging tax (since Jan 1, 2021).
TDOR's guide backs this up. A marketplace over the sales threshold collects sales tax on its bookings, and since Jan 1, 2021 marketplaces remit local occupancy tax to the state. Gatlinburg's sheet says Airbnb and Vrbo collect and remit the hotel and motel tax but not the city gross receipts tax.
What stays your job:
- Gatlinburg or Pigeon Forge gross receipts tax, every month.
- County and city business licenses, and the STRU permit outside cities.
- Sales tax and lodging tax on direct bookings or any channel that doesn't remit.
- Records showing each platform booking and the tax it remitted. TDOR says you don't report marketplace sales on your sales tax return but should keep proof, per its SUT-48 answer (opens in a new tab).
- Local reporting. TDOR's guide tells hosts to contact local officials even when renting only through platforms.
Filing and registering for the taxes you must file yourself
- Gatlinburg gross receipts tax. Monthly, due by the 20th of the following month (May's by June 20). Online filing directions arrive with your license within two weeks. Not receiving them doesn't excuse a late payment.
- Pigeon Forge lodging and gross receipts taxes. Monthly, due by the 20th. The lodging tax form (opens in a new tab) says taxes are delinquent on the 21st, with interest at 6% a year. Pay through the city's online payments page (opens in a new tab).
- State sales tax on direct bookings. Register and file in TNTAP (opens in a new tab). Monthly returns are due on the 20th of the following month.
- County lodging tax (outside cities). Paid to the Sevier County Trustee, 125 Court Avenue, Room 212W, Sevierville. Confirm frequency and form with that office.
- State business tax. TDOR's guide says a host with $100,000 or more in gross sales per tax year must register as a Classification 3 taxpayer in each county and city where the property sits.
This is not tax advice. A Tennessee CPA can confirm which returns apply to you.
Other local rules
The county Fire Marshal's STRU inspection items (opens in a new tab) apply to permits outside city limits:
- Working smoke alarms in each bedroom or sleeping area, corridors and living areas. Homes built after 1993 should have interconnected alarms (UL-listed wireless interconnection accepted).
- CO detectors in each room with a fuel-burning appliance.
- A 2A10BC fire extinguisher on each level, serviced every year by a certified company. If it's behind a door, the door needs a "Fire Extinguisher Inside" sticker.
- A floor evacuation plan on each level showing sleeping areas.
- Address numbers at least 4 inches tall, visible from the street or driveway.
- Charcoal grills at least 10 feet from the structure. Gas grills on decks need a non-combustible mat, a timer on the gas line and 18 inches of clearance from railings.
- Wood-burning chimneys cleaned and inspected yearly, and dryer ducts cleaned yearly.
To permit more than 12 occupants, the unit has to meet the program's occupancy and fire protection steps. In Pigeon Forge, homes with more than 5 sleeping rooms, more than 12 occupants, over 5,000 square feet including decks, or more than 3 stories must meet hotel and motel (R-1) requirements for sprinklers, exits and guardrails. Gatlinburg's safety, noise and parking rules were not stated on the pages read.
The vacation rental safety checklist and the emergency info sign cover the posting and labeling side.
Where to check for changes
- Sevier County STRU permit program (opens in a new tab) and county business license (opens in a new tab)
- Gatlinburg overnight rental sheet (opens in a new tab)
- Pigeon Forge forms and licenses (opens in a new tab)
- TDOR short-term rental guide (opens in a new tab)
- Airbnb Tennessee taxes (opens in a new tab)
To see what a booking leaves you after platform fees and the gross receipts tax, use the Airbnb fee calculator.
See your payout
Enter your nightly rate and cleaning fee. See what you keep after Airbnb's fee.
See what a stay pays after feesFrequently asked questions
Does Airbnb pay the Gatlinburg hotel and motel tax?
Yes, according to Gatlinburg's own sheet, which says online marketplaces such as Airbnb and Vrbo collect and remit it. They do not pay the city's 1.25% gross receipts tax, which you file monthly.
What fire extinguisher does a Sevier County cabin need?
Outside city limits, the Fire Marshal's inspection list requires a 2A10BC extinguisher on each level, serviced every year by a certified company. Ask your city about requirements inside Gatlinburg or Pigeon Forge.
How much is the Sevier County short-term rental permit?
$250 a year for a unit that sleeps 12 or fewer, and $25 more per occupant for 13 or more. It applies only outside city limits.
Do I need a business license if I only rent on Airbnb?
Yes. The county clerk says rentals need a county business license, and homes inside a city also need a city license. Tennessee's guide attributes platform bookings to the owner, not the platform, for business tax.
What is the total tax a guest pays in Pigeon Forge?
The city says 12.25%, which includes its 2.5% lodging tax. Pigeon Forge also charges the owner a 1% gross receipts tax that isn't added to the guest's bill.
On this page